BP’s new boss to overhaul structure after retreat from green strategy

What Happened

BP’s new boss has set out plans to reinstate the company structure the fossil fuel supermajor ditched six years ago as part of its failed attempt to reorganise the business to pursue a green agenda. Meg O’Neill told staff that the 117-year-old company would return to a “simpler, stronger” two-business arrangement including an upstream oil and gas production unit and a downstream business focused on refining and distributing fuels and retail activities.

Why It Matters

This strategic shift reflects the challenges faced by major oil companies in transitioning to renewable energy while maintaining profitability. By returning to its traditional structure, BP aims to stabilize its operations and respond more effectively to market demands, particularly in light of recent geopolitical tensions affecting oil prices.

The Bigger Picture

BP's decision may signal a broader trend among fossil fuel companies reevaluating their commitments to green initiatives in the face of economic pressures. As the energy landscape evolves, the balance between fossil fuels and renewable energy will continue to be a critical issue for the industry and policymakers alike.